JPMorgan to price callable contingent interest notes tied to two ETFs

By Devika Patel

Knoxville, Tenn., July 5 – JPMorgan Chase Financial Co. LLC plans to price callable contingent interest notes due July 28, 2020 linked to the least performing of the SPDR S&P Biotech exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by JPMorgan Chase & Co.

Each quarter, the notes pay a contingent coupon at an annual rate of between 8.75% and 9.75% if each fund closes at or above its interest barrier, 55% of its initial level, on the review date for that quarter. The exact coupon will be set at pricing.

The notes are callable in whole but not in part at par plus the contingent coupon, if any, on any interest payment date other than the final one beginning Oct. 30, 2017.

If the notes have not been called, the payout at maturity will be par plus the contingent coupon unless either fund finishes below its trigger value, 55% of its initial level, in which case investors will lose 1% for each 1% decline of the least-performing fund from its initial level.

J.P. Morgan Securities LLC is the agent.

The notes (Cusip: 46647MVT7) will price on July 21 and settle on July 28.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.